NCUA Issues Cease and Desist Order to Ex-CEO
The NCUA issued a cease and desist order Friday against David Addison, former CEO of $1.4 billion Texans Credit Union in Richardson, Texas.
“The order, to which Addison consented without admitting fault, requires that Addison not become an employee of, hold any office in or serve as a board member of any federally insured credit union or credit union service organization,” the NCUA said in a press release.
NCUA Public Affairs Specialist John Fairbanks confirmed the NCUA's lawsuit against Addison has been settled.
The NCUA filed suit against Addison in January of last year. After taking over as CEO in 2003, Addison “began making drastic changes to the credit union, changing longstanding internal policies and fundamentally shifting its overall business focus,” the lawsuit said.
Under Addison’s leadership, the NCUA claimed Texans started making investments in “several risky businesses and commercial loan participations,” not normally related to credit unions.
“Mr. Addison’s actions were very costly to the credit union, and financial institution regulators have a responsibility to hold accountable those parties–institutions or individuals–when they undermine safety and soundness,” NCUA Board Chairman Debbie Matz said in January of 2013.
“NCUA is required by statute to take every action we can to recover TCU’s losses, including legal action,” Matz added.